Types of Business Organizations and Recommendation for IOM Solutions

Business
Organizations

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
About the company..........................................................................................................................3
Different types of organisations.......................................................................................................3
Sole proprietorship.................................................................................................................3
Partnership organisations........................................................................................................4
Corporation.............................................................................................................................5
Limited liability company......................................................................................................6
Recommendation for the most suitable type of organisation for IOM solutions.............................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.................................................................................................................8

INTRODUCTION
Business organisation refers to the formal entity or structure which is created to carry out
commercial activities. This form of structure based on laws such as property rights,
incorporation, exchange and contract which is mandatory to follow for all the organisations.
There are various types of business organisation such as partnership, sole proprietorship,
corporation, limited liability company and cooperative (Abdulaali, 2018). All these types of
organisations work according to their structure and liability so that they can achieve goals and
objectives. This report is based on IOM solution which is involved in selling and distribution of
electronical parts to their local garages which is located in UK from last 8 years. This report
includes type of business organisation along with their sources of laws and their nature of
management which is carried out by the members of UK. It will involve the most appropriate
form of business structure for IOM solutions along with their legal consequences.
MAIN BODY
About the company
IOS solution is operating their business as a sole trader from 8 years by the operator Sam.
They deal with local garages by selling them electrical parts and they have grown their business
to large extend in last two years. Sam is planning to expand their business but he is confused that
what type of organisation he has to opt for their operations.
Different types of organisations
There are majorly four types of organisations which can be discussed in brief. IOM currently
operates as sole trader which is carried out by the individual person (Ashkenas and Manville,
2018). Discission of all the types of organisations can help IOM solution in finding the most
appropriate type of organisation to reorganise the business. Types of organisations are discussed
below:
Sole proprietorship
The legal business entity which is fully Managed and owned by an individual is referred to
sole proprietorship. All the profits and losses are bear by an individual in this type of
organisation and all the activities which are carried out in accordance to achievement of goals are